ASIA'S OUTDOOR EXPLOSION: Outdoor is coming into its own as a medium in Asia, helped by increasing fragmentation of the print and broadcast media

<p>And, on the flip side, the notorious traffic snarls that bring </p><p>regional capitals to a standstill only means there's a bigger audience </p><p>out-of-home, just one of many factors behind outdoor's unprecedented </p><p>expansion. </p><p><BR><BR> </p><p>The lay of the land of Asia's vast urban outdoors is changing rapidly as </p><p>ambient media vendors put expansion of networks and product improvements </p><p>in top gear in the hope of diverting a greater share of budgets to the </p><p>medium. </p><p><BR><BR> </p><p>Few could put a figure on just how much is being poured into </p><p>infrastructure expansion. But it's safe to say that the Asia-wide tab </p><p>could run into the high multi-millions in US dollar terms. </p><p><BR><BR> </p><p>The pace and scope of the latest expansion drive is unprecedented. It's </p><p>happening on the transportation front, at point-of-sale, leisure and </p><p>entertainment outlets, roadside and in public institutions such as </p><p>hospitals, libraries and universities. Vendors have been upping the ante </p><p>with each product launch, rolling out offerings that technological </p><p>improvements have made possible, including one innovation which promises </p><p>to take trackside advertising to the next level. </p><p><BR><BR> </p><p>If there's a silver lining in the technology bust, it's the boost it's </p><p>given to the expansion efforts of outdoor vendors. LED displays now cost </p><p>a third of their original price, making it a bargain for vendors to </p><p>replace standard billboards with them, according to Kam Ling, chief </p><p>executive of Hong Kong-based MediaNation, the holding company for Top </p><p>Result. </p><p><BR><BR> </p><p>At the same time, the maturing of markets in the West as well as </p><p>Australia has led international operators to raise investment in Asia's </p><p>outdoor business. The latest to grasp regional opportunities is </p><p>Australia's APN News & Media, which has set up a Singapore company </p><p>called Asia Posters as part of an aggressive Asia-Pacific expansion </p><p>push. This is on top of a string of new ventures - the setting up of the </p><p>joint-venture Universal Outdoor in Thailand, an investment in Malaysian </p><p>outdoor company Kurnia and the launch of Taxi Media in Singapore through </p><p>a joint-venture with City Dreams. </p><p><BR><BR> </p><p>Says Asia Posters chief executive John Smallwood: "We have 75 per cent </p><p>of the outdoor market in Australia so we've reached the stage where </p><p>there are few growth opportunities." Smallwood, who refers to Asia as </p><p>the "last frontier", adds: "Asian expansion is part of a long-term plan </p><p>for us because some of these opportunities will take some years to come </p><p>to fruition." He expects the industry to consolidate as international </p><p>operators - JCDecaux and Clear Channel - acquire smaller players. </p><p><BR><BR> </p><p>Others predict consolidation is still years away, but point to strategic </p><p>alliances as factors driving outdoor's expansion. "The major phase of </p><p>consolidation has yet to come to Asia-Pacific, but consolidation in the </p><p>West means that the bigger players in the region now have the resources </p><p>to expand their networks," says CCP's Singapore-based managing director </p><p>Peter Kemeny. </p><p><BR><BR> </p><p>JCDecaux Pearl & Dean managing director, Peter Christofis, adds: "The </p><p>outdoor market has grown significantly in the last two years because of </p><p>the emergence of other forms, which is a great thing. When there is more </p><p>outdoor, it allows advertisers to look at the medium in a more </p><p>top-of-mind way. They can think of outdoor as a whole medium. </p><p><BR><BR> </p><p>"With all the facets we now have, advertisers can do a very strong </p><p>campaign using just outdoor. Whereas some years back, it was TV, print </p><p>and what else." </p><p><BR><BR> </p><p>With the exception of a trio of market laggards, innovations and </p><p>expansion are evident from Shanghai to Singapore. Kelly Clark, MindShare </p><p>Asia-Pacific chief executive, blames disorganised selling practices and </p><p>poor infrastructure for holding the industry back in Thailand, Indonesia </p><p>and the Philippines. </p><p><BR><BR> </p><p>But he says the industry is growing impressively in Hong Kong, Malaysia </p><p>and Singapore. </p><p><BR><BR> </p><p>Outdoor vendors in Singapore have perhaps been among the more </p><p>enterprising in maximising opportunities to further develop outdoor </p><p>infrastructure. </p><p><BR><BR> </p><p>By December, JC Decaux Pearl & Dean will unveil plasma screens at the </p><p>city's train stations. It will intersperse advertising with information </p><p>on train arrival times to ensure commuters pay attention to it video, </p><p>minus audio, footage, according to marketing manager Helena Paoli. </p><p><BR><BR> </p><p>At the same time, rival operator CCP Adshel is bumping up capacity </p><p>significantly after snagging a 15-year contract for transport shelters. </p><p>It will spend S$100 million (US$57 million) over the next </p><p>three-and-a-half years upgrading and installing illuminated panels to </p><p>3,120 bus and 80 taxi shelters. </p><p><BR><BR> </p><p>The company has also turned the humble bicycle into a conservation hero </p><p>and an unexpected advertising medium. Under the SmartBike scheme - </p><p>touted as a significant contribution to the city's green plan - </p><p>residents who sign up for the service enjoy free use of sponsored </p><p>bicycles in their neighbourhood. The scheme's launch sponsor Singapore </p><p>Telecommunications has since agreed to raise its first year investment </p><p>of S$50,000 to $250,000 next year. CCP's Kemeny says the </p><p>SmartBike scheme has been positively received - an independent survey </p><p>found that 94 per cent of residents in the launch neighbourhoods were </p><p>aware of the scheme's existence and 72 per cent considered it to be good </p><p>or excellent. </p><p><BR><BR> </p><p>As ambient media - especially those with audio capabilities - can be </p><p>intrusive, a positive view is crucial to the success of most out-of-home </p><p>advertising choices. </p><p><BR><BR> </p><p>In Hong Kong, one ambient media choice has raised commuters' hackles </p><p>only because it increased the din decibel in an already noisy town. The </p><p>launch of TV screens in buses by Roadshow, a subsidiary of bus company </p><p>KMB, some months back sparked a heated debate among commuters, who </p><p>complained about noise levels. </p><p><BR><BR> </p><p>But that hasn't stopped another operator from rolling out a competitive </p><p>offering. Celebrity-backed Star East's Mobile Media subsidiary is </p><p>claiming a 70 per cent market share for its M Channel product to </p><p>install, market and provide content and advertising for an in-vehicle TV </p><p>service, covering 2,300 buses. </p><p><BR><BR> </p><p>On top of this, it has also secured similar contracts to install TV </p><p>monitors and plasma screens in shopping centres in high traffic areas, </p><p>medical clinics, and fast food and convenience store chains. The first </p><p>phase, involving 200 buses, will launch by the end of this month. </p><p>Expansion into mainland China will happen in the second phase, planned </p><p>for early 2002, following deals to roll out the service on buses in </p><p>Beijing, Guangzhou and Wuhan. </p><p><BR><BR> </p><p>Wendy Yeung, chief executive of MagicMedia, M Channel's sales agent, </p><p>says the parent company will supply a regular diet of business and </p><p>entertainment news, infotainment and documentaries, which will be </p><p>screened in a 30-minute loop, with six minutes dedicated to advertising. </p><p>"If you produce quality and entertaining content, it will be easier to </p><p>attract eyeballs, which will be our strength in expanding the service," </p><p>says Yeung. </p><p><BR><BR> </p><p>Beyond the new flirtation with in-bus TV products, Hong Kong's bus scene </p><p>is bubbling in other ways. Advertisers credit the activity to KMB </p><p>"taking a more commercial approach" to the business and the arrival of </p><p>New World First Bus. The latter has since appointed Top Result as its </p><p>exclusive sales agent. Kam of MediaNation, says it will upgrade and </p><p>build new shelters under the deal, starting in the fourth quarter. </p><p><BR><BR> </p><p>But it's the launch of a rail track advertising innovation that has </p><p>excited ad agencies. The UK's MotionPoster will beat New York-based </p><p>Submedia for the Asia launch of the service, which allows short, silent, </p><p>TV-style commercials to be shown in the windows of trains. Remarkably </p><p>simple in its application, the service uses some very clever technology </p><p>to adjust projection of the images according to the train's travel </p><p>speed. "Simplicity works best for outdoor. With this technology, it's </p><p>like watching a silent movie but it's the audience - not the film - that </p><p>moves," explains Sarah Burrows, account manager of Corporate </p><p>Communications, MotionPoster's PR agency in Hong Kong. </p><p><BR><BR> </p><p>MotionPoster's Asian launch is scheduled for Seoul on October 8, with a </p><p>second site coming online four weeks later. The company is reportedly in </p><p>talks with six railway operators in Asia, including Hong Kong's two rail </p><p>companies. </p><p><BR><BR> </p><p>Adidas, Coca-Cola and Sprite have used the service in Europe, where </p><p>client demand prompted MotionPoster to increase its offering from the </p><p>initial seven-10 seconds to 23 seconds, which can be split in several </p><p>blocks. </p><p><BR><BR> </p><p>Burrows says existing TVCs can be adapted for the service. In the case </p><p>of its launch client Adidas, the sporting goods company had creative </p><p>made specially for a longer time slot. It ran two executions </p><p>back-to-back - the first featured an athlete followed by an old woman </p><p>running alongside and eventually overtaking the train. </p><p><BR><BR> </p><p>These and other innovations are prompting agencies to take a greater </p><p>look at the medium, which is counting on increased TV and print </p><p>fragmentation to help its case. </p><p><BR><BR> </p><p>Says MindShare's Clark: "Marketers are increasingly looking for </p><p>alternatives to TV, especially where irrational pricing policies by TV </p><p>media owners are creating unsustainable levels of price inflation. </p><p>Virtually every advertiser is looking for ways to cut through the media </p><p>clutter." </p><p><BR><BR> </p><p>As irrational TV pricing policies go, this factor is likely to be the </p><p>main driver behind the 15 per cent surge in annual outdoor billings for </p><p>China between now and 2003, based on Zenith Media's projections. Last </p><p>year, outdoor's share was 16 per cent of China's total adspend. Bullish </p><p>growth expectations and an Olympic-related advertising boom should spur </p><p>significant investment in this highly-fragmented market, which recently </p><p>saw Hong Kong internet company Tom.com shell out US$38 million </p><p>for five local outdoor firms. </p><p><BR><BR> </p><p>Though growing, and even outpacing TV and print growth rates, outdoor's </p><p>share of budget is significantly less elsewhere in Asia. While </p><p>optimistic of the industry's growth prospects, a realistic Kemeny adds: </p><p>"Payback will be years away." </p><p><BR><BR> </p><p>- Additional reporting by Leithen Francis in Singapore and Christy Liu </p><p>in Hong Kong. </p><p><BR><BR> </p><p>OUTDOOR ADVERTISING EXPENDITURE (hk$000S) </p><p>Year 2001 First half Total Media Outdoor </p><p>Hong Kong 14,123,977 529,565 </p><p>Malaysia 1,465,300 12,501 </p><p>Singapore 750,703 45,936 </p><p>Thailand 29,529,917 684,972 </p><p>Source: ACNielsen. </p><p><BR><BR> </p>